Dispute Resolution

Definition of Dispute Resolution
  • The handling and resolution of disputes, commonly used in relation to optimistic rollups and their fraud proof mechanism.
  • Optimistic rollups submit transactions to an L1 under the assumption they are correct. If an eligible entity disagrees with the validity of the rollup’s transactions, they can issue a dispute and generate a fraud proof.
  • The dispute is considered resolved once the fraud proof has been verified, any offending parties are punished, and any required changes of the rollup’s chain are complete.
  • The dispute resolution is said to be external if the process occurs on the L1 instead of on the rollup.